REO Incentives Program
Ohio REO Owner/Occupant Homebuyers will be able to
- purchase a HUD home with a $100 down payment using a FHA loan
- obtain a $2,500 sales allowance at closing that can be used towards closing costs, to make repairs to the home or to pay down the unpaid principal balance of the mortgage
Real estate brokers can
- receive a $500 broker bonus when borrowers use any FHA mortgage program
- If the borrowers do not use FHA-insured financing, they can still qualify for a $1,000 sales allowance to be used for the payment of closing costs and real estate brokers will qualify for a $250 bonus.
FHA-insured loans offer
- low down payment requirements
- competitive interest rates
- pre-foreclosure protection
- flexible credit qualifying
FHA does not provide direct financing; instead FHA insures mortgage lenders against loss, making lenders more willing to give loans with lower qualifying requirements, thus making it easier for borrowers to qualify for the loan. Even if borrowers have had credit problems such as bankruptcy, it is easier for them to qualify for an FHA loan than a conventional loan.
FHA 203(k) Rehabilitation Loan Program
- allows homebuyers to borrow funds to acquire and then repair a property
- purchase and repair costs are rolled into a single mortgage with repairs completed after closing
- a streamlined version of the 203(k) program allows borrowers to make minor home improvements without the documentation and costs of the full 203(k) program
HUD REO Inventory
- Over 4,000 homes in the State of Ohio are available for bids.
- HUD homes range from low cost homes which might need some repairs to homes in good condition that are ready for immediate occupancy.
- Properties can be accessed at www.fha.gov and bids can be placed online.
The new incentives program will be offered through September 30, 2008. For more information on the program, visit www.fha.gov or call 1-800-CALLFHA.